KLA-Tencor Corporation (KLAC)
Interest coverage
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,593,026 | 3,322,403 | 3,415,871 | 3,867,649 | 4,086,054 | 4,230,929 | 4,241,647 | 3,989,081 | 3,649,323 | 3,404,184 | 3,197,830 | 2,799,696 | 2,518,721 | 2,216,216 | 1,691,268 | 1,590,367 | 1,478,745 | 1,304,861 | 1,402,648 | 1,379,500 |
| Interest expense (ttm) | US$ in thousands | 311,253 | 301,908 | 296,701 | 296,779 | 296,940 | 267,646 | 232,850 | 196,422 | 160,339 | 156,112 | 155,226 | 156,254 | 157,328 | 157,579 | 157,718 | 159,310 | 160,274 | 160,570 | 152,526 | 138,592 |
| Interest coverage | 11.54 | 11.00 | 11.51 | 13.03 | 13.76 | 15.81 | 18.22 | 20.31 | 22.76 | 21.81 | 20.60 | 17.92 | 16.01 | 14.06 | 10.72 | 9.98 | 9.23 | 8.13 | 9.20 | 9.95 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,593,026K ÷ $311,253K
= 11.54
The interest coverage ratio for KLA-Tencor Corporation has exhibited a generally positive trend over the past few quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently been above 1, which suggests that the company has generated sufficient operating income to cover its interest expenses.
Looking at the trend, the interest coverage ratio has been steadily increasing from 9.95 in September 2019 to 11.54 in June 2024, peaking at 22.76 in September 2022. This upward trend signifies an improvement in the company's ability to service its debt over the period under review.
With an interest coverage ratio consistently above 1, KLA-Tencor Corporation has maintained a healthy financial position in terms of meeting its interest obligations. This indicates financial stability and the ability to withstand fluctuations in interest rates or operating performance that may impact the company's ability to cover interest expenses.
Peer comparison
Jun 30, 2024